Europe shivers as credit freeze hits Iceland

Central bankers and officials in Iceland are locked in economic bailout talks this weekend, as Gordon Brown attempts to convince European leaders to back a £12bn fund for small businesses across the Continent.

Iceland's economy is on the brink of collapse, after the krona fell 27 per cent against the dollar last week. The fall sent fresh shockwaves through the UK financial system, as Icelandic banks have invested billions in the British economy. One of the biggest, Kaupthing, is estimated to have underwritten about £3bn in debt to finance deals in this country, and just two of the banks have more than 150,000 British internet customers.

Tags:

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA